Quarterly Journal of Political Science, 2012, 7: 1–46 Comparing British and French Colonial Legacies: A Discontinuity Analysis of Cameroon∗ Alexander Lee1 and Kenneth A. Schultz2 1Stanford University; [email protected] 2Stanford University; [email protected] ABSTRACT Colonial institutions are thought to be an important determinates of post-independence levels of political stability, economic growth, and public goods provision. In particular, many scholars have suggested that British institutional and cultural legacies are more conducive to growth than those of France or other colonizers. Systematic tests of this hypothesis are complicated by unobserved heterogeneity among nations due to variable pre- and post-colonial histories. We focus on the West African nation of Cameroon, which includes regions colonized by both Britain and France, and use the artificial former colonial boundary as a discontinuity within a national demographic survey. We show that rural areas on the British side of discontinuity have higher levels of wealth ∗ We are grateful to Rachel Stein and Luke Condra for assistance with ArcGIS and to Claire Adida for assistance in translating the survey instrument, and participants at the Stanford Comparative Politics Workshop and the American Political Science Associations 2011 annual meeting for their comments. Online Appendix available from: http://dx.doi.org/10.1561/100.00011022 app Supplementary Material available from: http://dx.doi.org/10.1561/100.00011022 supp MS submitted 23 March 2011 ; final version received 21 February 2012 ISSN 1554-0626; DOI 10.1561/100.00011022 c 2012 A. Lee and K. A. Schultz 2 Lee and Schultz and local public provision of piped water. Results for urban areas and centrally-provided public goods show no such effect, suggesting that post-independence policies also play a role in shaping outcomes. Though our ability to identify causal mechanisms is limited, the evi- dence suggests that communities on the British side benefited from a policy of indirect rule and lack of forced labor, which produced more vigorous local institutions. The men who built Europe’s colonial empires thought they were doing a favor for those whom they conquered. They argued that the institu- tional package that they brought to the colonies — David Livingston’s ‘‘Commerce, Christianity and Civilization’’ — would ultimately lead to a higher standard of living and quality of government than that provided by the institutions they destroyed (Livingston, 1868). While contemporary scholars no longer see colonialism as unambiguously positive, they do agree on its importance. A series of quantitative studies, both within and across nations, have linked colonial-era policies and institutions to post-independence variation in economic growth (Acemoglu et al., 2001; LaPorta et al., 1999), public goods provision (Banerjee and Iyer, 2005; Iyer, 2007), democracy (Lipset, 1994; Weiner, 1989), and corruption (Treisman, 2000). One strand of this literature suggests that colonization by the British led to better outcomes than colonization by the French or by the smaller colonial powers, because of either the adaptability of British legal institutions to the market economy or the higher levels of personal freedom provided by British political institutions and culture (Hayek, 1960; Lipset, 1994; North, 2005; La Porta et al., 1998). The argument has become a common one, and dummy variables for colonial background have become a common feature of large-N studies in comparative politics. A well-known shortcoming of such studies, however, is that they conceal a large amount of unobserved heterogeneity in (1) the pre-existing conditions of the areas colonized, (2) the institutions imposed by the colonizer, and (3) the post-independence political histories of these countries. As such, any estimation of colonizer effects may be biased, and this bias could be par- ticularly strong with respect to the British Empire, the largest, oldest, and most heterogeneous of the imperial units. It could be, for example, that the British managed to take the ‘‘plum’’ colonies, which would have experienced better political and economic outcomes regardless of who colonized them. Comparing British and French Colonial Legacies 3 To identify the effects of colonial legacy, we focus on one case, the West African nation of Cameroon. Originally colonized by Germany, Cameroon was divided between Britain and France during World War I at a boundary that was unrelated to existing political, economic, demographic, and physi- cal features. The two countries’ colonial practices in Cameroon differed on a number of dimensions identified as important in previous research: the legal system (common vs. civil law), the nature of colonial rule (direct vs. indi- rect), labor policies (paid vs. forced), and the prevailing religion. The two areas were reunited at independence in 1960, and despite a strong policy of centralization, they retain separate legal and education systems and a strong attachment to the language and culture of their respective colonizers. A comparison of these regions thus permits an excellent test of the colo- nizer influence hypothesis. The regions became British and French colonies due to an exogenous shock unrelated to local conditions and have similar post-independence histories. Any differences in pre-existing conditions are unlikely to be pronounced at the arbitrary internal boundary between them. Hence, we can exploit the natural experiment provided by the border to identify the effects, if any, of colonial legacy. While the use of a single case raises issues of external validity, we argue that the strategies pursued by the British and French in Cameroon present a hard case for the hypothesis of British superiority. Using data from the 2004 Demographic and Health Survey of Cameroon, we compare communities near the former colonial border using a regres- sion discontinuity research design and a comparison of neighboring vil- lages near the boundary. We show that rural households on the British side have higher levels of wealth than their Francophone counterparts on the other side of the border. There is also evidence, though somewhat less robust, that Anglophone villages have better access to piped water, a locally provided public good. These results do not hold for urban areas or for centrally-provided public goods like roads and education, suggesting that the effect of colonial-era differences can be attenuated by post-colonial policies. While it is difficult to pinpoint with certainty the mechanism for these differences, the available evidence suggests that these differences are not due to ‘‘soft legacies’’ associated with religion and educational system but rather to the ‘‘hard legacies,’’ including the lack of forced labor and indirect rule, which gave British Cameroon more vital local level institutions. 4 Lee and Schultz The remainder of the article reviews related literature, introduces the history of Cameroon’s intercolonial border and the divergent practices of its colonizers, presents main results followed by additional tests that assess mechanisms and alternative explanations, and concludes. Previous Literature Several scholars have argued that British colonial origin is associated with positive outcomes, though they have not always agreed on what these out- comes are or by what mechanism British colonialism produces them. The question is complicated by the fact that colonial legacies vary on multiple dimensions, and there is substantial variation not only across empires, but also within them. Nonetheless, theory and evidence suggest that practices and institutions generally associated with British colonial rule help generate superior development compared to those of other colonizers.1 The most influential strand of the literature has focused on economic growth, and argues that growth is in part determined by the legal system bequeathed by the colonizer (Hayek, 1960; North, 2005; La Porta et al., 1998). In this view, British colonies benefited from the common law system, which provided greater rights to investors and property owners when com- pared to the civil law systems used by France and other imperial powers. The protections of common law are in turn thought to be buttressed by a cultural commitment to the rule of law and/or institutional checks (e.g., an independent judiciary, separation of powers) that protect individuals from expropriation by the state. Others have put greater emphasis in the cultural factors that are thought to encourage entrepreneurialism and other individ- ual behaviors conducive to growth. The oldest such argument comes from Weber (1947 [1905]), who argued that Protestantism’s emphasis on hard work and repression of consumption promoted markets and capital accu- mulation. Authors such as Fergsuson (2003) have formulated the cultural argument even more expansively, arguing that the British Empire provided a long list of abstract benefits, including ‘‘the idea of liberty’’ and team sports, 1 It must be emphasized that we are comparing different forms of colonial rule. We can say nothing about what would have happened in these countries in the absence of European colo- nialism. Comparing British and French Colonial Legacies 5 which contributed to the growth of market economies. Another strand of research has argued that British colonies are more likely to become democ- racies than are colonies of other nations (Weiner, 1989; Huntington, 1984). This effect is thought to be caused either by higher levels of